Source: CounterPunch
by Dean Baker
“Around 200 economists work for the Federal Reserve Board in Washington, and roughly 200 more work for the 12 district banks around the country. The new Fed chair, Kevin Warsh, could assign some of the Fed economists to assess whether the current valuation of the stock market is consistent with the Fed’s projections for the future growth of GDP and profits. Unless their arithmetic is very different than the stuff the rest of us use, they will have to conclude that stock valuations are not consistent, unless today’s crop of stockholders expect very low future returns. That seems unlikely, but that is the alternative to saying that the market is in a bubble.” (05/27/26)